Page 13 - CIMA SCS Workbook February 2019 - Day 1 Tasks

VITA FAMILIARISATION

could have serious consequences to the user, and could result in litigation against the supplier.
Mention is made of this already happening to a competitor, Clown. Vita will need to monitor and
maintain the accuracy of the data its products provide.

Business combinations

Mention is made of 4 competitors, 2 of which (Gopher-IT and Smart Heart) have only been
formed in the last 3 years. The market leader Funfitt has already seen a bid to acquire Gopher-IT
fail due to competition authority concerns. Growth by acquisition is natural in a high growth
industry; Vita could either look to take over a competitor, or be a target itself for another
company.

Staff retention

Vita recognises the importance of being able to attract and retain the best talent. It currently
enjoys good relations with staff and claims to have one of the lowest employee turnover rates in
the industry. However, a competitor may make a bid to poach staff; Vita will need to ensure that
it continues to offer competitive salaries, career opportunities and good working conditions to
keep staff from being tempted to leave.

Importance of software

Mention is made of the growth potential in the industry until at least 2022, but there is also
greater emphasis likely to be placed on software rather than hardware. Vita will need to ensure
that it can evolve as the market does.

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